KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as of March 29, 2022.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 9.91 | 10.41 |
| 2 – Week | 10.10 | 10.60 |
| 1 – Month | 10.95 | 11.45 |
| 3 – Month | 11.73 | 11.98 |
| 6 – Month | 12.26 | 12.51 |
| 9 – Month | 12.28 | 12.78 |
| 1 – Year | 12.32 | 12.82 |
Market analysts said the latest KIBOR readings reflect continued tightening in monetary conditions amid rising inflationary pressures and expectations of further policy adjustments by the State Bank of Pakistan. They noted that higher interbank lending rates are likely to increase borrowing costs for businesses and consumers, potentially slowing credit expansion in the economy. Financial experts added that short-term tenors are closely aligned with liquidity management in the banking system, while longer tenors incorporate inflation outlook and sovereign borrowing requirements.
They further observed that elevated KIBOR levels may impact corporate financing, particularly in sectors dependent on working capital loans such as manufacturing and trade. However, some analysts believe that tighter monetary discipline could help stabilize macroeconomic indicators over time by curbing excessive demand and supporting currency stability. Market participants are closely watching upcoming monetary policy announcements and inflation trends for further direction in interest rate movements.
